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China's agriculture ministry issued guidelines on April 21 recommending reduced use of corn and soymeal in pig and poultry feed. The guidelines encourage alternatives such as wheat, rice, barley, sorghum and other meals.
China consumes about 175 million tonnes of corn in feed and imports close to 100 million tonnes of soybeans.
A shift away from corn and soymeal in Chinese rations could reduce import demand for both, which is bearish for global corn and soymeal prices over time.
manitobacooperator.caDominique Patton, Hallie GuMay 4, 2021After 310 past bearish policy events, Corn moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
After 223 past bearish policy events, Soybean Meal moved a median -0.3% over 5 sessions (45% higher; middle half -2.2% to +1.2%), and -0.6% over 20.
After 369 past bearish policy events, Soybeans moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
